China's Q1 smartphone shipments fall below 100 mln: IDC

China's Q1 smartphone shipments fall below 100 mln: IDC

Xiaomi provided the only bright spot among the top 10 smartphone vendors, recording triple-digit percentage growth this quarter. "The North America market has been problematic for Chinese brands and the ban on ZTE will further decline their share in the region".

Nokia HMD, iTel, Xiaomi, Tecno, OnePlus and Huawei were the noted brands in the fastest growing category. This was partly due to an increase in feature phone shipments by some key brands such as Nokia HMD and Reliance Jio who both saw YoY growth. Samsung share declines slightly on a year ago from 35.1% to 34.4%, although experiences a strong uplift on share from the previous Q4 17 period (where Apple share peaked at 46%) with the Galaxy S8 the top-selling smartphone with a share of 11%.

"More importantly, in a market as complex as China, where global brands are finding it tough to combat native vendors in terms of volume, Apple has been beating local players by growing its ASP and building out other revenue streams from the Mac, App Store and accessories, effectively capitalising on its deep-pocketed installed base".

The next phase for Xiaomi, in Lei's own words (pdf, p.1), is to become "an innovation-driven internet company" rather than a hardware company.

Smartphones have basically dominated the market, making the smartphone industry a powerful force that has shaped the direction of other major industries such as the content streaming and advertising industry. Samsung shifted 78 million handsets and has 22 per cent of the market, while Apple sold 52.2 million and has 15 per cent.

At No. 2 in the most-selling smartphones list for the first 3 months of 2018 is Apple iPhone 8.

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Xiaomi reported the strongest growth in three years in Q1, 2018 ahead of IPO filing, according to Canalys.

Apple could face stiff competition soon from Samsung, however. Oppo, on the other hand, has seen a decline of 7.5 percent year-over-year and it now has a market share of 7.1 percent.

After a very slight drop-off, the first Android phone makes an appearance in fifth place: Xiaomi's Redmi 5A with 5.4 million units shipped.

The Chinese smartphone brands, with mere budget phones, are taking their fight to premium high-end brands including Samsung, LG, HTC and Sony. If the order stands, it will influence ZTE's smartphone business globally - affecting the company's ability to source critical components from the likes of Qualcomm and Google, among other United States technology providers.

In Australia, Tamsin Timpson, the Strategic Insight Director for Worldpanel ComTech APAC said: "iOS share increases in the 3 m/e March 2018 to 40.6%, up from 39.1% in the 3 m/e March 2017". The iPhone 8 had 12.5% and the iPhone 8 Plus posted an 8.3% share.

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